A fixed-rate mortgage (FRM) is a home loan where the interest rate and monthly payment amount remain constant for the entire loan term, providing predictable budgeting for borrowers. Unlike adjustable-rate loans, FRMs are fully amortized, meaning the loan is completely paid off by the end of the term, but they carry inflation risk—borrowers benefit from unexpectedly high inflation while losing out if rates fall. In the United States, the Federal Housing Administration (FHA) helped standardize this loan type, with 15-year and 30-year terms being the most common. Globally, the structure varies significantly: Canada typically caps fixed terms at ten years, Denmark uses 30-year fixed rates as the standard, and the UK locks rates for only the first two to five years before converting to adjustable. Although fixed-rate mortgages usually charge higher interest rates than adjustable ones, scholars note that borrowers should generally prefer adjustable rates unless current interest rates are low.